
I try my best to keep up with the UK’s economic news — and if I’m honest, most of it feels like doom and gloom lately. Rising costs, interest-rate whiplash, political uncertainty, another housing reform here or there…
But underneath the noise, there’s a real shift happening in the property world — one that affects all of us producing inventories, check-ins and reports every day. Here’s a quick snapshot of where the market is, what’s changing, and how we can adapt our businesses for the next decade.
The Lay of the Land
- Roughly 65% of UK households own their homes; about 19% privately rent; and around 16% are in social housing. Those shares are fairly stable, but who owns the rental homes is changing.
- Nearly half of landlords own one property — but that group accounts for only 21% of tenancies. At the other end, 17% of landlords own five or more properties, and they control almost half of the rental market. In other words, a relatively small cohort of larger landlords already holds a big slice of the market.
- Age matters: the median landlord age is 59, and almost two-thirds are aged 55 or above. Many are nearing retirement. Some are passing their assets down to their children; others are selling up or trimming the “hassle” properties they no longer want to manage.
- Add in the rise of institutional capital: pension funds, developers and Build-to-Rent operators are now pouring billions into the sector — lifting expectations around professionalism, compliance, and digital standards.
Building, Buying and the Battle for Supply
- Small landlords are exiting: data through 2024–25 show significant selling by private landlords. Combined with tighter mortgage lending, it’s thinning day-to-day supply.
- Build-to-Rent is growing fast but still small overall: by early 2025 there were around 127,000 completed Build-to-Rent homes with nearly 300,000 more in the pipeline. That’s only about 2% of the private rented sector today, though much higher in major cities.
- Are large funds buying existing homes like in the US? Not on a big scale. UK institutional investors tend to fund new developments — purpose-built, long-term rental blocks that are easier to manage efficiently — rather than buying up older, scattered housing stock.
- We’re still not building enough: government targets call for 300,000 new homes a year, but completions remain well below that, closer to 230,000–240,000. The gap keeps upward pressure on rents.
What this means for clerks: as operations professionalise, our standards must follow — not just report quality, but also data protection, Information Commissioner’s Office registration, and proper General Data Protection Regulation (GDPR) compliance. Larger operators will assume these are already in place.
Rents, Returns and Reality Checks
- Rents continue to rise, but the pace is easing: UK private rents were up roughly 6% year-on-year in mid-2025, the seventh straight month of slower growth — affordability is biting.
- Typical asking rents: about £1,365 per month outside London, and around £2,700 per month in London.
- Gross rental yields: the UK average sits near 6%, but varies hugely: often 7.5–8% or more in the North East and Scotland, around 6–7% in the North West and Midlands, and closer to 4–5% in London and the South East.
- Buy-to-Let mortgage costs: recent figures show two- and five-year fixed-rate Buy-to-Let loans generally around 4–5% for borrowers with low levels of debt compared to property value (that is, a low “loan-to-value” ratio). Once fees are included, the Annual Percentage Rate of Charge, which represents the total cost of borrowing, can be higher.
In plain terms, if your gross yield is 5% and your borrowing costs are around 4–5% before taxes and maintenance, the numbers are tight. That helps explain why smaller landlords are leaving and why larger, better-funded operators are stepping in.
Where Government Policy Is Steering Things
The Renters’ Rights Bill (the reworked version of the Renters Reform Bill) is in the late stages of Parliament’s “back-and-forth” process between the House of Commons and the House of Lords.
Most observers expect Royal Assent later in 2025, with different parts phased in during 2026.
What’s likely to happen:
- End of Section 21 “no-fault” evictions; landlords will have to use specific legal grounds.
- End of fixed-term tenancies, replaced by ongoing monthly (periodic) tenancies.
- Limits on rent in advance — landlords will not be allowed to demand more than one month before a tenancy begins.
- A new national landlord register and ombudsman, to improve accountability.
What’s still uncertain: the precise list of possession grounds, how rent-increase challenges will work, and how existing tenancies will transition to the new system. Those details depend on further regulations still to be written.
What This Means for Us on the Ground
1. Standards are tightening — build defensibility
Your reports are increasingly part of a landlord’s legal protection — whether for deposit disputes, property condition claims or eviction grounds. That means:
- Precision instead of personality
- Clear, consistent terminology
- Uniform report layouts so larger clients can audit quickly
If you’re still typing in Word, it’s worth upgrading to a dedicated inventory reporting platform. These tools add automatic timestamps, version control, data export options and easier links into letting-agency systems.
2. Technology and data integration are no longer optional
Large operators expect structured, machine-readable data rather than simple PDF files.
That means using software that supports photo tagging, artificial-intelligence condition comparison, and automatic links to property-management software — the central systems agents use to track rents, maintenance and compliance.
These digital links, called application programming interfaces, allow your report to appear in their systems instantly without anyone re-uploading it manually.
3. The personal touch still matters
Smaller landlords and tenants still value human reassurance. Explaining a report in person or by email can prevent many disputes.
Tenants often say, “I didn’t sign the inventory, so it’s not valid.” Taking time to explain the review process and encouraging them to add their own photos helps protect everyone. It may feel like an extra five-minute call, but it can save thousands of pounds later.
4. Diversify and future-proof
If you’ve relied on just a few agents, consider broadening your base:
- Offer compliance reviews before the new rules take effect.
- Add mid-term inspections tailored to larger portfolios.
- Position yourself as a local expert who can interpret national policy for smaller landlords.
Many landlords you’ll meet are baby-boomers thinking about retirement or passing wealth to their children. They’ve enjoyed years of capital growth but are tired of the constant maintenance calls and tax changes. Some are selling the more troublesome properties and keeping their favourites. Clear, professional documentation helps them achieve cleaner sales and smoother exits.
The Next Ten Years — Cautious Optimism
It’s easy to be cynical, but the UK rental market is maturing. It’s becoming more regulated, more consistent and more professional. Yes, that means more paperwork and less flexibility — but it also means more opportunity for those who can operate at that higher level.
As smaller, non-compliant landlords step away, quality becomes the differentiator. Those who deliver clear, compliant, and technology-ready inventories will be the ones Build-to-Rent operators, portfolio managers and corporate landlords turn to.
There’s also new money coming in. The next wave of landlords isn’t just investors chasing returns — it’s often builders, tradespeople and second-generation owners who use their skills to create high-quality shared homes or modernised rentals.
The business model of “buy, develop, rent and refinance” is thriving for those who can manage costs.
Ending fixed-term tenancies might even smooth the seasonal summer rush, making life easier for clerks who face feast-or-famine scheduling each August and September. And if bad properties start turning over more frequently while good ones stay let, that could finally nudge owners to improve standards across the board.
Personally, I’m still cautious about the Renters’ Rights Bill — I suspect it will end up better than many fear, but whenever life gets harder for landlords, some of that pressure tends to fall on tenants. Even so, I think we’ll adapt. This is a moment to get sharper, not smaller.
At the Association of Independent Inventory Clerks (AIIC), we’re here to help independent clerks adapt, learn and thrive: training on standards, templates that meet portfolio expectations, and practical guidance on using new technology.
When the market shifts, let’s make sure we’re steering the ship — not drifting behind it.
Chris Callear
Director of Membership, AIIC